16 September 2022
Fears over rate rises and economic downturn hit markets, made worse by FedEx’s big profit warning“Markets flashed red across the board on the last day of the trading week. Investors have become increasingly nervous about the scale and pace of interest rate hikes after the recent bout of inflation data and next week we have some serious decisions to be made by some of the most important central banks,” says Russ Mould, investment director at AJ...
15 September 2022
FTSE up, warnings from THG, DFS and Hilton Foods, Shell CEO to leave“After all the drama around high inflation rates in recent sessions, pockets of Asian and European markets managed to push ahead on Thursday. The Hang Sang jumped 0.5%, the Nikkei nudged up 0.2% and the DAX advanced 0.1%,” says Russ Mould, investment director at AJ Bell.
“In the UK, the FTSE 100 traded 0.6% higher, with banking stocks leading the...
14 September 2022
Retail operation delivers another banana skin to Ocado and M&S investors“The core business of Ocado Retail is delivering jam to its customers today but after another trading disappointment shareholders in the business are once more left with a story that promises jam tomorrow,” says AJ Bell investment director Russ Mould.
“The Ocado Smart Platforms business still offers undeniable long-term potential, as the company...
14 September 2022
Dunelm reveals record profit despite tough outlook and Fundsmith to shut EM trust“Despite some of the key factors behind surging inflation easing slightly, many prices continue to go up and markets are not happy. Yesterday’s slump on Wall Street was triggered by a mixture of investor jitters and the fact that food, house and medical costs continue to rise,” says Russ Mould, investment director at AJ Bell.
“The Vix measure of...
13 September 2022
US inflation in focus, latest supermarket data sees Morrisons lose ground and Ocado sales drop“The FTSE 100 failed to back up Monday’s strong gains and saw modest losses on Tuesday as unemployment dropped to its lowest level since 1974, but wages still failed to keep pace with rampant inflation,” says AJ Bell investment director Russ Mould.
“Rising prices will be in focus this lunchtime as the US posts its CPI reading for August. July’s...
12 September 2022
Soames to leave Serco and IPO revival spurred by two new trusts“Disappointing UK GDP figures failed to derail the country’s main stock indices, with the domestically focused FTSE 250 up 0.3% and the more international FTSE 100 rising by 0.6%,” says Russ Mould, investment director at AJ Bell.
“The mere 0.2% advance in the UK economy in July would suggest consumers have been tightening their belts as they...
8 September 2022
ECB takes centre stage, Primark warns on energy costs, Melrose automotive unit spin off, Darktrace suitor exits and Restaurant Group takeaways warning“For years, central bank interest rate decisions used to be background noise, with investors confident that rates would stay low. This year they’ve become must-watch events, with every word studied by the market,” says Russ Mould, Investment Director at AJ Bell.
“The current theme is not whether central banks will raise rates, but by how much...
7 September 2022
Why the strong dollar could be a source of concern for investorsWhile UK-based investors will be well aware of how weak the pound is against the US dollar, languishing near $1.15 and its lows of early 1985, sterling is not the only currency whose decline against the greenback is gathering pace.
The DXY index, which measures the value of the dollar against six major currencies, stands at its highest level since...
7 September 2022
FTSE falls, GB Group targeted by private equity, Barratt reveals buyback as housing market shows resilience, Halfords motors higher, WH Smith dips despite reassuring update“Amid widespread selling in global markets, the FTSE 100 followed suit on Wednesday morning,” says AJ Bell Investment Director Russ Mould.
“Action on energy bills continues to be widely trailed as new prime minister, Liz Truss, prepares for an official announcement on her policy.
“Given the big package that is expected, anything short could spark...
6 September 2022
Berkeley ups prices to cover rising costs and retail stocks soar following energy bill relief reports“After yesterday sinking to a 37-year low against the dollar, the pound perked up on Tuesday, rising 0.2% to $1.1586 as the UK prepared for the changing of the guard at number 10,” says Russ Mould, investment director at AJ Bell.
“Reports so far suggest energy providers will be able to use government-backed loans to subsidise bills, meaning there...
5 September 2022
Gilt and currency markets could be the first real test for new PM“The stock market may well have its say on the new Prime Minister, but the response of the Government bond – or Gilt – market and the pound may be more telling, at least in the very short term,” says AJ Bell investment director Russ Mould.
“Financial markets express their faith – or lack of it – in a country and its economic and political...
2 September 2022
US jobs numbers in focus, Shell boss reportedly stepping down“There will be some relief on Friday morning that, for now, the recent wave of selling in global stock markets has eased,” says AJ Bell investment director Russ Mould.
“After US stocks broke a four-day losing streak overnight, the FTSE 100 has eked out modest gains, supported by a broad range of companies caught up in the sell-off.
“Housebuilders...
1 September 2022
Why the Fed has to keep hammering away at inflation“Psychologist Abraham Maslow wrote in the 1960s that, ‘If the only tool you have is a hammer, it is tempting to treat everything as if it is a nail.’ The US Federal Reserve has spent more than a decade trying to fuel inflation with the blunt instruments of interest rates and Quantitative Easing and now it has (over)done it, the central bank seems...
1 September 2022
US earnings forecasts creep down as costs creep upTuesday’s batch of economic data from the US may ease fears of a recession, as job vacancies rose, consumer confidence rebounded and house prices stayed firm, all eyes will now switch to Thursday’s manufacturing data.
The Institute for Supply Management’s purchasing managers’ index (PMI) for manufacturing is on a long losing streak that goes back...
1 September 2022
FTSE lower amid global sell-off, London recovery led by PPHE hotels“The start of September has not brought about any change to the current gloomy mood pervading markets,” says AJ Bell investment director Russ Mould.
“Further weakness in the US and Asia, with the rally of early August an increasingly distant memory, set the stage for selling in Europe. Reports of the US banning the sale of micro-chips by NVIDIA to...
31 August 2022
FTSE 100 steady despite selling in Asia and the US overnight, food prices soar, Dalata Hotels back in profit“The FTSE 100 clawed back some of Tuesday afternoon’s losses on Wednesday morning despite continued selling overnight in the US and Asia,” says AJ Bell Investment Director Russ Mould.
“As was the case earlier in the year, the FTSE 100’s collection of more attractively valued companies and healthy sprinkling of financials is helping at a time when...
30 August 2022
FTSE 100 up as pound sinks against the dollar, Joules insists Next deal remains on track“The FTSE 100 started on the front foot after the Bank Holiday, having careered into the long weekend with some substantial losses after Federal Reserve chair Jerome Powell’s hawkish speech at the Jackson Hole summit,” says AJ Bell Investment Director Russ Mould.
“It helps that US stocks have stabilised to some extent in the interim. Unsurprising...
26 August 2022
Markets poised for Powell at Jackson Hole, UK energy crisis deepens, Micro Focus catches $6 billion bid“The energy crisis continues to escalate in the UK as the latest price cap is announced but for the markets all the focus is on Jackson Hole where, this afternoon UK time, Federal Reserve chair Jerome Powell is set to outline his position on interest rates,” says AJ Bell investment director Russ Mould.
“Gains on Wall Street overnight have helped to...
25 August 2022
UK mortgage approvals and US jobs data UK mortgage approvalsJune’s mortgage approvals figure was 63,726 according to the Bank of England. That undershot economists’ forecasts, representing the seventh time in twelve that approvals had fallen month-on-month and the eleventh consecutive year-on-year decline.
Perhaps most tellingly, that figure also undershot the 12-month average that...
25 August 2022
Bunzl first-half results"After rising by around a sixth over the past year, Bunzl’s share price stands only a fraction below its all-time high, buoyed by June’s trading update, when chief executive Frank van Zanten raised the company’s guidance for 2022 for a second time. Bunzl now expects ‘very good’ revenue growth, compared to a prior forecast of ‘moderate’ growth, and...
25 August 2022
FTSE up after strong trading in US & Asia as Jackson Hole begins, energy producers in focus, CRH delivers double-digit price increases“The FTSE 100 took its cue from strong trading in the US and Asia to make gains on Thursday morning as investors await the crunch Jackson Hole summit in Wyoming,” says AJ Bell investment director Russ Mould.
“There’s a lot riding on US Federal Reserve chair Jerome Powell’s address tomorrow. Speculation is running so hot ahead of his remarks that it...
24 August 2022
Markets lose momentum, Whitbread plans major new hotel on the Strand and Allied Minds heads for the door“Markets seem to have lost their momentum following the rally since mid-June. Investors have become nervous once again, with all eyes on Federal Reserve chair Jerome Powell and what he says this coming Friday,” says Russ Mould, Investment Director at AJ Bell.
“Investors are worried that the US central bank will continue to raise interest rates at...
23 August 2022
FTSE lower as European gas prices surge, Wood Group revenue dips and BT in the clear over Drahi investment“The FTSE 100 was under pressure on Tuesday amid a gloomy global market outlook,” says AJ Bell Investment Director Russ Mould.
“The hopes earlier in the summer that inflation might have peaked, and the Federal Reserve might, in turn, ride to the market’s rescue, are looking increasingly forlorn.
“European natural gas prices saw a renewed surge...
22 August 2022
FTSE downbeat as Jackson Hole looms into view and Cineworld confirms possible bankruptcy filing“The FTSE 100 began Monday in downbeat mood ahead of what could prove to be a critical moment for markets at the end of this week,” says AJ Bell Investment Director Russ Mould.
“The Jackson Hole summit of central bankers and finance ministers is widely expected to see US Federal Reserve chair Jerome Powell take to the floor and puncture optimism...
19 August 2022
Weak consumer backdrop punishes pound, Just Eat gets cash injection from Brazil sale, and Joules goes from bad to worse with another profit warning“The FTSE 100 was broadly flat on Friday after a mixed set of retail sales, and with inflation driving the cost of servicing government debt higher,” says AJ Bell Financial Analyst Danni Hewson.
“The consumer backdrop feels increasingly gloomy and that’s bad news because consumer spending is such an important contributor to the UK economy.
“The...